Earnings Release Highlights
- GAAP full-year 2023 Net Income of $1,492
million and Cash Flow from Operations of $5,453 million.
- Net Income from Ongoing Operations1 of $1,498 million, Ongoing Operations Adjusted
EBITDA1 of $4,140 million,
$440 million higher than the midpoint
of the original guidance range announced in Nov. 2022, and Ongoing Operations Adjusted
FCFbG1 of $2,491 million,
exceeding the midpoint of the original guidance by $441 million.
- Announced Federal Energy Regulatory Commission ("FERC")
approval of the pending Energy Harbor Corp. ("Energy Harbor")
acquisition, with closing expected to occur on March 1, 2024.
- Repurchased approximately 98% of the outstanding beneficial
interests in the rights to receive payments under the Tax
Receivable Agreement ("TRA"), increasing expected free cash flow
over the next several years and simplifying the company's capital
structure.
- Board authorized an additional $1.5
billion of share repurchases, which is expected to be
utilized by year-end 2025.
IRVING,
Texas, Feb. 28, 2024 /PRNewswire/ -- Vistra Corp.
(NYSE: VST) today reported its full-year 2023 financial results and
other highlights.
"I want to thank our Vistra team of nearly 5,000 men and women
for a very strong year of operational and financial performance.
Their focus on safety, operational excellence, and customer
experience enabled the production and delivery of safe, reliable,
and affordable power to our retail and commercial customers across
the country despite several significant weather events throughout
the year," said Jim Burke, President
and CEO of Vistra. "Our integrated model performed very well and
enabled us to stay focused on the four key strategic priorities
underpinning our Vistra strategy."
Burke continued, "We are excited to have recently received the
final regulatory approval needed to close the acquisition of Energy
Harbor. We believe this will be a transformational acquisition for
our company, meaningfully scaling our zero-carbon business that
provides reliable, dispatchable power. We are confident that the
addition of Energy Harbor will allow Vistra to leverage its core
strengths of safely and reliably operating power generation
facilities, serving our retail customers, and managing commercial
risk. We expect the transaction to close on March 1st and look forward to
welcoming our new colleagues to the Vistra team."
|
Summary of Financial
Results for the Year Ended December 31,
20232
(Unaudited)
(Millions of Dollars)
|
|
|
|
Year Ended December
31,
|
|
|
2023
|
|
2022
|
|
Net income
|
|
$
1,492
|
|
$
(1,210)
|
|
Ongoing Operations Net
Income
|
|
$
1,498
|
|
$
(1,063)
|
|
Ongoing Operations
Adjusted EBITDA
|
|
$
4,140
|
|
$
3,119
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment
|
|
|
|
|
|
Retail
|
|
$
1,105
|
|
$
923
|
|
Texas
|
|
$
1,770
|
|
$
1,438
|
|
East
|
|
$
707
|
|
$
608
|
|
West
|
|
$
263
|
|
$
152
|
|
Sunset
|
|
$
358
|
|
$
42
|
|
Corporate and
Other
|
|
$
(63)
|
|
$
(44)
|
|
Asset
Closure
|
|
$
(39)
|
|
$
(125)
|
For the year ended Dec. 31, 2023,
Vistra reported Net Income of $1,492
million, Net Income from Ongoing Operations1 of
$1,498 million, and Ongoing
Operations Adjusted EBITDA1 of $4,140 million. Net Income for the full year 2023
was an improvement of $2,702 million
from the full year 2022 Net Loss, driven primarily by the reversal
of unrealized hedging losses in 2022. Ongoing Operations Adjusted
EBITDA for the full-year 2023 was $1,021
million higher than the full-year 2022, driven primarily by
strong counts and margin performance in retail and the availability
and performance of our generation units, especially in the summer
months in ERCOT, combined with our comprehensive hedging program
and our ability to optimize our flexible assets.
|
Guidance3
|
|
|
($ in
millions)
|
Reaffirmed 2024
Vistra
Standalone Guidance Ranges
|
|
Ongoing Operations
Adjusted EBITDA
|
$3,700 -
$4,100
|
|
Ongoing Operations
Adjusted FCFbG
|
$1,900 -
$2,300
|
The $3,900 million midpoint of
Vistra's Standalone 2024 Ongoing Operations Adjusted EBITDA
Guidance range is meaningfully higher than the range of midpoint
opportunities the company had estimated in its earnings
presentations in 2022 and the first half of 2023.
As of Feb. 23, 2024, Vistra has
hedged approximately 99% of its expected generation volumes for the
balance of 2024 and approximately 87% for 2025. Vistra's
comprehensive hedging program, as well as forward price curves as
of Feb. 23, 2024, support the
company's 2024 standalone guidance ranges and its previously
announced Ongoing Operations Adjusted EBITDA midpoint opportunity
for 2025. Vistra is anticipating the 2025 midpoint opportunity to
be in the range of $3,800 million to
$4,000 million for Ongoing Operations
Adjusted EBITDA (exclusive of any future EBITDA contribution from
Energy Harbor).4
Share Repurchase Program
As of Feb. 23, 2024:
- Vistra executed ~$3.7 billion in
share repurchases since November
2021.
- Vistra's Board of Directors authorized an additional
$1.5 billion of share
repurchases.
- Vistra had ~348 million shares outstanding, representing a ~28%
reduction of the amount of the shares outstanding on Nov. 2, 2021.
Vistra expects to spend $2.25
billion on share repurchases in 2024 and 2025.
Repurchase of TRA Rights
As of Feb. 23, 2024, Vistra
repurchased approximately 98% of the outstanding beneficial
interests in the rights (the "TRA Rights") to receive payments
under the TRA, in exchange for approximately $475 million of newly issued 8.875% Series C
Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock
and approximately $150 million of
cash. In addition to simplifying Vistra's capital structure, these
repurchases are expected to be cash flow accretive over the
foreseeable planning horizon.
Clean Energy Investments
Vistra is focused on reliability, affordability and
sustainability of electricity in the markets in which we operate.
Vistra continues to grow its fleet of zero-carbon resources,
advancing these interests through cost-effective, strategic
investments in solar and battery storage developments and through
the upcoming acquisition of Energy Harbor.
On Nov. 6, 2023, Vistra published
its 2023 Climate Report in accordance with the Task Force on
Climate-related Financial Disclosures (TCFD) framework. The TCFD
framework provides a set of recommended climate-related disclosures
and guidelines that companies may use to better inform investors,
customers, and other stakeholders. Vistra cares about its
stakeholders and is proud to share with them how the company is
well-prepared to manage climate-related risks as well as capitalize
on potential opportunities.
In February 2024, FERC approved
Vistra's acquisition of Energy Harbor, which will add more than
4,000 MW of nuclear generation to its portfolio along with
approximately 1 million additional retail customers. Together with
Vistra's existing 2,400 MW Comanche Peak nuclear power plant, this
acquisition will bring Vistra's nuclear capacity to more than 6,400
MW at the transaction's closing, which is expected to occur on
March 1, 2024. Further, in 2022,
Comanche Peak applied to extend its operating licenses through 2050
and 2053 for the two-unit facility, an additional 20 years beyond
the original licenses. This process is advancing as expected.
The Inflation Reduction Act is anticipated to provide the
opportunity to realize material benefits to Vistra with respect to
its renewables and energy storage projects, as well as provide
strong price support via the nuclear production tax credit for its
nuclear facilities, including those being acquired through the
Energy Harbor transaction.
Vistra expects to start construction this spring on its three
larger Illinois solar and energy
storage projects, part of the Coal to Solar and Energy Storage
Initiative. Vistra intends to remain strategic and disciplined with
respect to the timing of investments in renewables and energy
storage projects.
Liquidity
As of Dec. 31, 2023, Vistra had
total available liquidity of approximately $5,799 million,
including cash and cash equivalents of $3,485 million, $1,213
million of availability under its corporate revolving credit
facility, and $1,101 million of
availability under its commodity-linked revolving credit
facility.5 Available capacity under the commodity-linked
revolving credit facility reflects the borrowing base as of
Dec. 31, 2023. Available liquidity
excludes approximately $750 million
and $125 million of undrawn available
borrowing capacity as of Dec. 31,
2023, under Vistra's accounts receivable and repurchase
facility financing arrangements, respectively, and $474 million of commitments under the
commodity-linked revolving credit facility that were not available
to be drawn as of Dec. 31, 2023.
Earnings Webcast
Vistra will host a webcast today, Feb.
28, 2024, beginning at 10 a.m.
ET (9 a.m. CT) to discuss
these results and related matters. The live webcast and the
accompanying slides that will be discussed on the call can be
accessed via Vistra's website at www.vistracorp.com under "Investor
Relations" and then "Events & Presentations." Participants can
also listen by phone by registering here prior to the start
time of the call to receive a conference call dial-in number. A
replay of the webcast will be available on Vistra's website for one
year following the live event.
About Non-GAAP Financial Measures and Items Affecting
Comparability
"Adjusted EBITDA" (EBITDA as adjusted for unrealized gains or
losses from hedging activities, tax receivable agreement impacts,
reorganization items, and certain other items described from time
to time in Vistra's earnings releases), "Adjusted Free Cash Flow
before Growth" (or "Adjusted FCFbG") (cash from operating
activities excluding changes in margin deposits and working capital
and adjusted for capital expenditures (including capital
expenditures for growth investments), other net investment
activities, and other items described from time to time in Vistra's
earnings releases), "Ongoing Operations Adjusted EBITDA" (adjusted
EBITDA less adjusted EBITDA from Asset Closure segment), "Net
Income (Loss) from Ongoing Operations" (net income less net income
from Asset Closure segment), and "Ongoing Operations Adjusted Free
Cash Flow before Growth" or "Ongoing Operations Adjusted FCFbG"
(adjusted free cash flow before growth less cash flow from
operating activities from Asset Closure segment before growth) are
"non-GAAP financial measures." A non-GAAP financial measure is a
numerical measure of financial performance that excludes or
includes amounts so as to be different than the most directly
comparable measure calculated and presented in accordance with GAAP
in Vistra's consolidated statements of operations, comprehensive
income, changes in stockholders' equity and cash flows. Non-GAAP
financial measures should not be considered in isolation or as a
substitute for the most directly comparable GAAP measures. Vistra's
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies.
Vistra uses Adjusted EBITDA as a measure of performance and
believes that analysis of its business by external users is
enhanced by visibility to both Net Income prepared in accordance
with GAAP and Adjusted EBITDA. Vistra uses Adjusted Free Cash Flow
before Growth as a measure of liquidity and believes that analysis
of its ability to service its cash obligations is supported by
disclosure of both cash provided by (used in) operating activities
prepared in accordance with GAAP as well as Adjusted Free Cash Flow
before Growth. Vistra uses Ongoing Operations Adjusted EBITDA as a
measure of performance and Ongoing Operations Adjusted Free Cash
Flow before Growth as a measure of liquidity, and Vistra's
management and board of directors have found it informative to view
the Asset Closure segment as separate and distinct from Vistra's
ongoing operations. Vistra uses Net Income (Loss) from Ongoing
Operations as a non-GAAP measure that is most comparable to the
GAAP measure Net Income in order to illustrate the company's Net
Income excluding the effects of the Asset Closure segment, as well
as a measure to compare to Ongoing Operations Adjusted EBITDA. The
schedules attached to this earnings release reconcile the non-GAAP
financial measures to the most directly comparable financial
measures calculated and presented in accordance with U.S. GAAP.
1 Ongoing Operations excludes the Asset Closure segment. Net
Income (Loss) from Ongoing Operations, Ongoing Operations Adjusted
EBITDA, and Ongoing Operations Adjusted Free Cash Flow before
Growth are non-GAAP financial measures. Any reference to "Ongoing
Operations Adjusted FCFbG" is a reference to Ongoing Operations
Adjusted Free Cash Flow before Growth. See the "Non-GAAP
Reconciliation" tables for further detail. Total segment
information may not tie due to rounding.
2 Upon movement of the Edwards Power Plant to the Asset Closure
segment effective Jan. 1, 2023, prior
year results were retrospectively adjusted for comparative
purposes.
3 2024 guidance ranges are for Vistra standalone, without any
estimated impacts of Energy Harbor performance.
4 Reflects the potential midpoint opportunity range of Ongoing
Operations Adjusted EBITDA for 2025 based on market curves as
of Nov. 2, 2023; does not include the
incremental Adj. EBITDA contribution expected from the Energy
Harbor acquisition; this range of estimated opportunities is not
intended to be guidance.
5 The Company expects to use cash on hand and borrowings under
its Accounts Receivable and other liquidity facilities to fund the
approximately $3.1 billion cash
necessary to close the Energy Harbor acquisition.
About Vistra
Vistra (NYSE: VST) is a leading, Fortune 500 integrated retail
electricity and power generation company based in Irving, Texas, providing essential resources
for customers, commerce, and communities. With operations in 20
states and the District of
Columbia, Vistra combines an innovative, customer-centric
approach to retail with safe, reliable, and efficient power
generation. Learn more at https://www.vistracorp.com.
Cautionary Note Regarding Forward-Looking
Statements
The information presented herein includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which are based on current expectations, estimates and
projections about the industry and markets in which Vistra Corp.
("Vistra") operates and beliefs of and assumptions made by Vistra's
management, involve risks and uncertainties, which are difficult to
predict and are not guarantees of future performance, that could
significantly affect the financial results of Vistra. All
statements, other than statements of historical facts, that are
presented herein, or in response to questions or otherwise, that
address activities, events or developments that may occur in the
future, including such matters as activities related to our
financial or operational projections, financial condition and cash
flows, projected synergy, value lever and net debt targets, capital
allocation, capital expenditures, liquidity, projected Adjusted
EBITDA to free cash flow conversion rate, dividend policy, business
strategy, competitive strengths, goals, future acquisitions or
dispositions, development or operation of power generation assets,
market and industry developments and the growth of our businesses
and operations (often, but not always, through the use of words or
phrases, or the negative variations of those words or other
comparable words of a future or forward-looking nature, including,
but not limited to: "intends," "plans," "will likely," "unlikely,"
"believe," "confident", "expect," "seek," "anticipate," "estimate,"
"continue," "will," "shall," "should," "could," "may," "might,"
"predict," "project," "forecast," "target," "potential," "goal,"
"objective," "guidance" and "outlook"), are forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements. Although Vistra believes that in making
any such forward-looking statement, Vistra's expectations are based
on reasonable assumptions, any such forward-looking statement
involves uncertainties and risks that could cause results to differ
materially from those projected in or implied by any such
forward-looking statement, including, but not limited to: (i)
adverse changes in general economic or market conditions (including
changes in interest rates) or changes in political conditions or
federal or state laws and regulations; (ii) the ability of Vistra
to execute upon its contemplated strategic, capital allocation,
performance, and cost-saving initiatives, including the acquisition
of Energy Harbor, and to successfully integrate acquired
businesses; (iii) actions by credit ratings agencies; (iv) the
severity, magnitude and duration of extreme weather events,
contingencies and uncertainties relating thereto, most of which are
difficult to predict and many of which are beyond our control, and
the resulting effects on our results of operations, financial
condition and cash flows; and (v) those additional risks and
factors discussed in reports filed with the Securities and Exchange
Commission by Vistra from time to time, including the uncertainties
and risks discussed in the sections entitled "Risk Factors" and
"Forward-Looking Statements" in Vistra's annual report on Form 10-K
for the year ended December 31,
2023.
Any forward-looking statement speaks only at the date on which
it is made, and except as may be required by law, Vistra will not
undertake any obligation to update any forward-looking statement to
reflect events or circumstances after the date on which it is made
or to reflect the occurrence of unanticipated events. New factors
emerge from time to time, and it is not possible to predict all of
them; nor can Vistra assess the impact of each such factor or the
extent to which any factor, or combination of factors, may cause
results to differ materially from those contained in any
forward-looking statement.
|
VISTRA
CORP.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Millions of
Dollars)
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2021
|
|
Operating
revenues
|
$
14,779
|
|
$
13,728
|
|
$
12,077
|
|
Fuel, purchased power
costs and delivery fees
|
(7,557)
|
|
(10,401)
|
|
(9,169)
|
|
Operating
costs
|
(1,702)
|
|
(1,645)
|
|
(1,559)
|
|
Depreciation and
amortization
|
(1,502)
|
|
(1,596)
|
|
(1,753)
|
|
Selling, general and
administrative expenses
|
(1,308)
|
|
(1,189)
|
|
(1,040)
|
|
Impairment of
long-lived and other assets
|
(49)
|
|
(74)
|
|
(71)
|
|
Operating income
(loss)
|
2,661
|
|
(1,177)
|
|
(1,515)
|
|
Other income
|
257
|
|
117
|
|
140
|
|
Other
deductions
|
(14)
|
|
(4)
|
|
(16)
|
|
Interest expense and
related charges
|
(740)
|
|
(368)
|
|
(384)
|
|
Impacts of Tax
Receivable Agreement
|
(164)
|
|
(128)
|
|
53
|
|
Net income (loss)
before income taxes
|
2,000
|
|
(1,560)
|
|
(1,722)
|
|
Income tax (expense)
benefit
|
(508)
|
|
350
|
|
458
|
|
Net income
(loss)
|
1,492
|
|
(1,210)
|
|
(1,264)
|
|
Net (income) loss
attributable to noncontrolling interest
|
1
|
|
(17)
|
|
(10)
|
|
Net income (loss)
attributable to Vistra
|
1,493
|
|
(1,227)
|
|
(1,274)
|
|
Cumulative dividends
attributable to preferred stock
|
(150)
|
|
(150)
|
|
(21)
|
|
Net income (loss)
attributable to Vistra common stock
|
$
1,343
|
|
$
(1,377)
|
|
$
(1,295)
|
|
VISTRA
CORP.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Millions of
Dollars)
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2021
|
|
Cash flows — operating
activities:
|
|
|
|
|
|
|
Net income
(loss)
|
$
1,492
|
|
$
(1,210)
|
|
$
(1,264)
|
|
Adjustments to
reconcile net income (loss) to cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,956
|
|
2,047
|
|
2,050
|
|
Deferred income tax
expense (benefit), net
|
457
|
|
(359)
|
|
(475)
|
|
Gain on sale of
land
|
(95)
|
|
(8)
|
|
(9)
|
|
Impairment of
long-lived and other assets
|
49
|
|
74
|
|
71
|
|
Unrealized net (gain)
loss from mark-to-market valuations of
commodities
|
(490)
|
|
2,510
|
|
759
|
|
Unrealized net (gain)
loss from mark-to-market valuations of interest
rate swaps
|
36
|
|
(250)
|
|
(134)
|
|
Change in asset
retirement obligation liability
|
27
|
|
13
|
|
(5)
|
|
Asset retirement
obligation accretion expense
|
34
|
|
34
|
|
38
|
|
Impacts of Tax
Receivable Agreement
|
164
|
|
128
|
|
(53)
|
|
Gain on TRA
settlement
|
(29)
|
|
—
|
|
—
|
|
Bad debt
expense
|
164
|
|
179
|
|
110
|
|
Stock-based
compensation
|
77
|
|
63
|
|
47
|
|
Other, net
|
103
|
|
(71)
|
|
50
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable —
trade
|
214
|
|
(852)
|
|
(228)
|
|
Inventories
|
(174)
|
|
36
|
|
(100)
|
|
Accounts payable —
trade
|
(350)
|
|
94
|
|
402
|
|
Commodity and other
derivative contractual assets and liabilities
|
82
|
|
(228)
|
|
32
|
|
Margin deposits,
net
|
1,899
|
|
(1,874)
|
|
(1,000)
|
|
Uplift securitization
proceeds receivable from ERCOT
|
—
|
|
544
|
|
(544)
|
|
Accrued
interest
|
46
|
|
16
|
|
13
|
|
Accrued
taxes
|
5
|
|
(8)
|
|
(20)
|
|
Accrued employee
incentive
|
58
|
|
21
|
|
(68)
|
|
Asset retirement
obligation settlement
|
(81)
|
|
(87)
|
|
(88)
|
|
Major plant outage
deferral
|
(32)
|
|
20
|
|
2
|
|
Other — net
assets
|
84
|
|
(17)
|
|
(27)
|
|
Other — net
liabilities
|
(243)
|
|
(330)
|
|
235
|
|
Cash provided by (used
in) operating activities
|
5,453
|
|
485
|
|
(206)
|
|
Cash flows — investing
activities:
|
|
|
|
|
|
|
Capital expenditures,
including nuclear fuel purchases and LTSA
prepayments
|
(1,676)
|
|
(1,301)
|
|
(1,033)
|
|
Proceeds from sales of
nuclear decommissioning trust fund securities
|
601
|
|
670
|
|
483
|
|
Investments in nuclear
decommissioning trust fund securities
|
(624)
|
|
(693)
|
|
(505)
|
|
Proceeds from sales of
environmental allowances
|
500
|
|
1,275
|
|
392
|
|
Purchases of
environmental allowances
|
(1,071)
|
|
(1,303)
|
|
(605)
|
|
Insurance
proceeds
|
15
|
|
39
|
|
89
|
|
Proceeds from sales of
property, plant and equipment
|
115
|
|
78
|
|
30
|
|
Other, net
|
(5)
|
|
(4)
|
|
(4)
|
|
Cash used in investing
activities
|
(2,145)
|
|
(1,239)
|
|
(1,153)
|
|
Cash flows — financing
activities:
|
|
|
|
|
|
|
Issuances of preferred
stock
|
—
|
|
—
|
|
2,000
|
|
Issuances of long-term
debt
|
2,498
|
|
1,498
|
|
1,250
|
|
Repayments/repurchases
of debt
|
(33)
|
|
(251)
|
|
(381)
|
|
Borrowings under Term
Loan A
|
—
|
|
—
|
|
1,250
|
|
Repayment under Term
Loan A
|
—
|
|
—
|
|
(1,250)
|
|
Proceeds from forward
capacity agreement
|
—
|
|
—
|
|
500
|
|
Net
borrowings/(repayments) under accounts receivable
financing
|
(425)
|
|
425
|
|
(300)
|
|
Borrowings under
Revolving Credit Facility
|
100
|
|
1,750
|
|
1,450
|
|
Repayments under
Revolving Credit Facility
|
(350)
|
|
(1,500)
|
|
(1,450)
|
|
Borrowings under
Commodity-Linked Facility
|
—
|
|
3,150
|
|
—
|
|
Repayments under
Commodity-Linked Facility
|
(400)
|
|
(2,750)
|
|
—
|
|
Debt issuance
costs
|
(59)
|
|
(31)
|
|
(13)
|
|
Stock
repurchases
|
(1,245)
|
|
(1,949)
|
|
(471)
|
|
Dividends paid to
common stockholders
|
(313)
|
|
(302)
|
|
(290)
|
|
Dividends paid to
preferred stockholders
|
(150)
|
|
(151)
|
|
—
|
|
Other, net
|
83
|
|
31
|
|
(21)
|
|
Cash provided by (used
in) financing activities
|
(294)
|
|
(80)
|
|
2,274
|
|
Net change in cash,
cash equivalents and restricted cash
|
3,014
|
|
(834)
|
|
915
|
|
Cash, cash equivalents
and restricted cash — beginning balance
|
525
|
|
1,359
|
|
444
|
|
Cash, cash equivalents
and restricted cash — ending balance
|
$
3,539
|
|
$
525
|
|
$
1,359
|
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE YEAR ENDED
DECEMBER 31, 2023
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
|
Net income
(loss)
|
$ 424
|
|
$ 354
|
|
$
1,160
|
|
$ 454
|
|
$ 633
|
|
$ (1,527)
|
|
$
1,498
|
|
$
(6)
|
|
$
1,492
|
|
Income tax
expense
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
507
|
|
508
|
|
—
|
|
508
|
|
Interest expense
and
related charges (a)
|
20
|
|
(21)
|
|
—
|
|
(8)
|
|
2
|
|
742
|
|
735
|
|
5
|
|
740
|
|
Depreciation and
amortization (b)
|
102
|
|
635
|
|
647
|
|
79
|
|
62
|
|
68
|
|
1,593
|
|
—
|
|
1,593
|
|
EBITDA before
Adjustments
|
546
|
|
968
|
|
1,808
|
|
525
|
|
697
|
|
(210)
|
|
4,334
|
|
(1)
|
|
4,333
|
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
586
|
|
799
|
|
(1,117)
|
|
(267)
|
|
(455)
|
|
—
|
|
(454)
|
|
(36)
|
|
(490)
|
|
Impacts of Tax
Receivable
Agreement
(c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
135
|
|
135
|
|
—
|
|
135
|
|
Non-cash
compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
78
|
|
78
|
|
—
|
|
78
|
|
Transition and
merger
expenses
|
—
|
|
1
|
|
1
|
|
—
|
|
1
|
|
47
|
|
50
|
|
—
|
|
50
|
|
Impairment of
long-
lived and other assets
|
—
|
|
—
|
|
—
|
|
—
|
|
49
|
|
—
|
|
49
|
|
—
|
|
49
|
|
PJM capacity
performance default
impacts (d)
|
—
|
|
—
|
|
3
|
|
—
|
|
6
|
|
—
|
|
9
|
|
—
|
|
9
|
|
Winter Storm Uri
(e)
|
(52)
|
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(48)
|
|
—
|
|
(48)
|
|
Other, net
|
25
|
|
(2)
|
|
12
|
|
5
|
|
60
|
|
(113)
|
|
(13)
|
|
(2)
|
|
(15)
|
|
Adjusted
EBITDA
|
$
1,105
|
|
$
1,770
|
|
$
707
|
|
$
263
|
|
$
358
|
|
$
(63)
|
|
$ 4,140
|
|
$
(39)
|
|
$ 4,101
|
|
___________
|
|
(a)
|
Includes $36 million of
unrealized mark-to-market net losses on interest rate
swaps.
|
|
(b)
|
Includes nuclear fuel
amortization of $91 million in the Texas segment.
|
|
(c)
|
Includes $29 million
gain recognized on the repurchase of TRA Rights in December
2023.
|
|
(d)
|
Represents estimate of
anticipated market participant defaults or settlements on
initial PJM capacity performance penalties due to extreme
magnitude of penalties associated with Winter Storm
Elliott.
|
|
(e)
|
Includes the
application of bill credits. The company incentivized certain
large commercial and industrial customers to curtail their usage
during Winter Storm Uri by providing bill credits for use in future
periods. The company believes the inclusion of the bill credits as
a reduction to Adjusted EBITDA in the years in which such bill
credits are applied more accurately reflects its operating
performance. We estimate remaining bill credit amounts to be
applied in future periods for 2024 (approximately $11 million) and
2025 (approximately $26 million).
|
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED EBITDA
FOR THE YEAR ENDED
DECEMBER 31, 2022
(Unaudited)
(Millions of Dollars)
|
|
|
Retail
|
|
Texas
|
|
East
|
|
West
|
|
Sunset
|
|
Eliminations /
Corp and
Other
|
|
Ongoing
Operations
Consolidated
|
|
Asset
Closure
|
|
Vistra Corp.
Consolidated
|
|
Net income
(loss)
|
1,158
|
|
(615)
|
|
(868)
|
|
(238)
|
|
(230)
|
|
(270)
|
|
$ (1,063)
|
|
(147)
|
|
$ (1,210)
|
|
Income tax
benefit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(350)
|
|
(350)
|
|
—
|
|
(350)
|
|
Interest expense
and
related charges (a)
|
14
|
|
(20)
|
|
3
|
|
(6)
|
|
3
|
|
371
|
|
365
|
|
3
|
|
368
|
|
Depreciation and
amortization (b)
|
145
|
|
623
|
|
706
|
|
42
|
|
66
|
|
69
|
|
1,651
|
|
31
|
|
1,682
|
|
EBITDA before
Adjustments
|
1,317
|
|
(12)
|
|
(159)
|
|
(202)
|
|
(161)
|
|
(180)
|
|
603
|
|
(113)
|
|
490
|
|
Unrealized net
(gain)
loss resulting from
hedging transactions
|
(291)
|
|
1,610
|
|
759
|
|
351
|
|
100
|
|
—
|
|
2,529
|
|
(19)
|
|
2,510
|
|
Generation plant
retirement expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
—
|
|
7
|
|
(3)
|
|
4
|
|
Fresh start /
purchase
accounting impacts
|
—
|
|
(2)
|
|
(1)
|
|
—
|
|
9
|
|
—
|
|
6
|
|
—
|
|
6
|
|
Impacts of Tax
Receivable Agreement
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
128
|
|
128
|
|
—
|
|
128
|
|
Non-cash
compensation
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
65
|
|
65
|
|
—
|
|
65
|
|
Transition and
merger
expenses
|
7
|
|
—
|
|
1
|
|
—
|
|
—
|
|
5
|
|
13
|
|
—
|
|
13
|
|
Impairment of
long-
lived and other assets
|
—
|
|
—
|
|
—
|
|
—
|
|
74
|
|
—
|
|
74
|
|
—
|
|
74
|
|
Winter Storm Uri
(c)
|
(141)
|
|
(178)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(319)
|
|
—
|
|
(319)
|
|
Other, net
|
31
|
|
20
|
|
8
|
|
3
|
|
13
|
|
(62)
|
|
13
|
|
10
|
|
23
|
|
Adjusted
EBITDA
|
$
923
|
|
$
1,438
|
|
$
608
|
|
$
152
|
|
$ 42
|
|
$
(44)
|
|
$ 3,119
|
|
$
(125)
|
|
$ 2,994
|
|
___________
|
|
(a)
|
Includes $250 million
of unrealized mark-to-market net gains on interest rate
swaps.
|
|
(b)
|
Includes nuclear fuel
amortization of $86 million in the Texas segment.
|
|
(c)
|
Adjusted EBITDA impacts
of Winter Storm Uri reflects $183 million related to a
reduction in the allocation of ERCOT default uplift charges which
were expected to be paid over several decades under protocols
existing at the time of the storm and $144 million related to the
application of bill credits to large commercial and industrial
customers that curtailed their usage during Winter Storm Uri. The
adjustment for ERCOT default uplift charges relates to (i) ERCOT
receiving payments that reduced the market wide default balance and
(ii) the fourth quarter 2022 derecognition of the remaining default
balance in connection with a settlement between Brazos and
ERCOT.
|
|
VISTRA
CORP.
NON-GAAP
RECONCILIATIONS - ADJUSTED FREE CASH FLOW
FOR YEAR ENDED
DECEMBER 31, 2023
(Unaudited)
(Millions of Dollars)
|
|
|
Ongoing
Operations
|
|
Asset
Closure
|
|
Vistra
Consolidated
|
|
Adjusted
EBITDA
|
$
4,140
|
|
$
(39)
|
|
$
4,101
|
|
Interest paid, net
(a)
|
(560)
|
|
—
|
|
(560)
|
|
Taxes paid net of
refunds
|
(24)
|
—
|
—
|
|
(24)
|
|
Working capital and
margin deposits
|
1,887
|
|
(3)
|
|
1,884
|
|
Accrued environmental
allowances
|
336
|
|
—
|
|
336
|
|
Reclamation and
remediation
|
(3)
|
|
(16)
|
|
(19)
|
|
Transition and merger
expense, including severance
|
(58)
|
|
(23)
|
|
(81)
|
|
Other changes in other
operating assets and liabilities
|
(63)
|
|
(121)
|
|
(184)
|
|
Cash provided by
(used in) operating activities
|
$
5,655
|
|
$
(202)
|
|
$
5,453
|
|
Capital expenditures
including nuclear fuel purchases and LTSA
prepayments (b)
|
(994)
|
|
—
|
|
(994)
|
|
Development and growth
expenditures
|
(682)
|
|
—
|
|
(682)
|
|
(Purchase)/sale of
environmental allowances
|
(571)
|
|
—
|
|
(571)
|
|
Other net investing
activities (c)
|
(5)
|
|
107
|
|
102
|
|
Free cash
flow
|
$
3,403
|
|
$
(95)
|
|
$
3,308
|
|
Working capital and
margin deposits
|
(1,887)
|
|
3
|
|
(1,884)
|
|
Development and growth
expenditures
|
682
|
|
—
|
|
682
|
|
Accrued environmental
allowances
|
(336)
|
|
—
|
|
(336)
|
|
Purchases and sales of
environmental credits and allowances, net
|
571
|
|
—
|
|
571
|
|
Transition and merger
expense, including severance
|
58
|
|
23
|
|
81
|
|
Adjusted free cash
flow before growth
|
$
2,491
|
|
$
(69)
|
|
$
2,422
|
|
____________
|
|
(a)
|
Net of interest
received.
|
|
(b)
|
Includes $227
million LTSA prepaid capital expenditures.
|
|
(c)
|
Includes investments in
and proceeds from the nuclear decommissioning trust fund, insurance
proceeds, proceeds from sales of assets, proceeds from sales of
nuclear fuel and other net investing cash flows.
|
|
VISTRA CORP. -
NON-GAAP RECONCILIATIONS 2024 GUIDANCE1
|
|
(Unaudited) (Millions
of Dollars)
|
|
Ongoing
Operations
|
Asset
Closure
|
Vistra
Consolidated
|
|
Low
|
High
|
Low
|
High
|
Low
|
High
|
|
Net Income
(loss)
|
1,790
|
2,090
|
(140)
|
(40)
|
1,650
|
2,050
|
|
Income tax
expense
|
500
|
600
|
0
|
0
|
500
|
600
|
|
Interest expense and
related charges (a)
|
960
|
960
|
0
|
0
|
960
|
960
|
|
Depreciation and
amortization (b)
|
1,650
|
1,650
|
0
|
0
|
1,650
|
1,650
|
|
EBITDA before
adjustments
|
4,900
|
5,300
|
(140)
|
(40)
|
4,760
|
5,260
|
|
Unrealized net (gain)
loss resulting from hedging transactions
|
(1,151)
|
(1,151)
|
(9)
|
(9)
|
(1,160)
|
(1,160)
|
|
Impacts of Tax
Receivable Agreement
|
96
|
96
|
0
|
0
|
96
|
96
|
|
Non-cash compensation
expenses
|
69
|
69
|
0
|
0
|
69
|
69
|
|
Transition and merger
expenses
|
8
|
8
|
0
|
0
|
8
|
8
|
|
Interest
Income
|
(220)
|
(220)
|
0
|
0
|
(220)
|
(220)
|
|
Other, net
|
(2)
|
(2)
|
4
|
4
|
2
|
2
|
|
Adjusted EBITDA
guidance
|
3,700
|
4,100
|
(145)
|
(45)
|
3,555
|
4,055
|
|
Interest paid,
net
|
(725)
|
(725)
|
0
|
0
|
(725)
|
(725)
|
|
Tax (paid) / received
(c)
|
(22)
|
(22)
|
0
|
0
|
(22)
|
(22)
|
|
Tax Receivable
Agreement payments
|
(28)
|
(28)
|
0
|
0
|
(28)
|
(28)
|
|
Working capital and
margin deposits
|
498
|
498
|
0
|
0
|
498
|
498
|
|
Accrued environmental
allowances
|
459
|
459
|
0
|
0
|
459
|
459
|
|
Reclamation and
remediation
|
(31)
|
(31)
|
(95)
|
(95)
|
(126)
|
(126)
|
|
ERP implementation
expenditures
|
(50)
|
(50)
|
0
|
0
|
(50)
|
(50)
|
|
Other changes in other
operating assets and liabilities
|
(46)
|
(46)
|
(12)
|
(12)
|
(58)
|
(58)
|
|
Cash provided by
operating activities
|
3,755
|
4,155
|
(252)
|
(152)
|
3,503
|
4,003
|
|
Capital expenditures
including nuclear fuel purchases and LTSA
prepayments
|
(924)
|
(924)
|
0
|
0
|
(924)
|
(924)
|
|
Solar and storage
development expenditures
|
(745)
|
(745)
|
0
|
0
|
(745)
|
(745)
|
|
Other growth
expenditures
|
(74)
|
(74)
|
0
|
0
|
(74)
|
(74)
|
|
(Purchase) sale of
environmental allowances
|
(291)
|
(291)
|
0
|
0
|
(291)
|
(291)
|
|
Other net investing
activities
|
11
|
11
|
0
|
0
|
11
|
11
|
|
Free cash
flow
|
1,732
|
2,132
|
(252)
|
(152)
|
1,480
|
1,980
|
|
Working capital and
margin deposits
|
(498)
|
(498)
|
0
|
0
|
(498)
|
(498)
|
|
Solar and storage
development and other growth expenditures
|
745
|
745
|
0
|
0
|
745
|
745
|
|
Other growth
expenditures
|
74
|
74
|
0
|
0
|
74
|
74
|
|
Accrued environmental
allowances
|
(459)
|
(459)
|
0
|
0
|
(459)
|
(459)
|
|
Purchase (sale) of
environmental allowances
|
291
|
291
|
0
|
0
|
291
|
291
|
|
Transition and merger
expenditures
|
(35)
|
(35)
|
2
|
2
|
(33)
|
(33)
|
|
ERP implementation
expenditures
|
50
|
50
|
0
|
0
|
50
|
50
|
|
Adjusted free cash
flow before growth guidance
|
1,900
|
2,300
|
(250)
|
(150)
|
1,650
|
2,150
|
|
1 Regulation
G Table for 2024 Guidance prepared as of Nov. 7, 2023; excludes any
potential contributions from Energy Harbor's
performance.
|
|
|
(a)
|
Includes unrealized
(gain) / loss on interest rate swaps of $50 million.
|
|
(b)
|
Includes nuclear fuel
amortization of $107 million.
|
|
(c)
|
Includes state tax
payments.
|
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multimedia:https://www.prnewswire.com/news-releases/vistra-reports-full-year-2023-results-announces-expected-closing-of-energy-harbor-transaction-on-march-1-2024-302073565.html
SOURCE Vistra Corp
